MORNING COFFEE

Verizon Gets iPhone. Verizon Wireless (VZ) will start selling the iPhone (AAPL) in January, bringing an end to AT&T's exclusive deal to sell the iPhone. Analysts say Verizon customers could buy as many as 3M iPhones per quarter.

Celgene Buys Abraxis. Celgene (CELG) has agreed to buy Abraxis BioScience (ABII) in a cash-and-stock deal that values the firm at $2.9 billion. The purchase will provide access to Abraxis' oncology treatments, including Abraxane, for breast cancer patients. The deal is a +17% premium to Abraxis' closing price yesterday.

Foreclosed Homes Were 1/3 Of Sales. Foreclosed properties accounted for 31% of the U.S. home sales in Q1, according to a new report by RealtyTrac.  Also accourding to RealtyTrac the average price for foreclosed properties was 27% below that of regular sales.

ADP Payrolls Miss Estimates.  ADP reported that U.S. companies increased their payrolls by only 13,000 in June.  Economist had estimated payrolls to increase by 60,000.  Many are wondering were the jobs are since the only really area the has shown job growth in the government sector.

Upgrades

US Bancorp (USB): FBR Capital raised their rating from Market Perform to Outperform and placed a target price of $28.00 on the company.

AstraZeneca (AZN): Jefferies raised their rating from Underperform to Hold.

Coverage Resumed

Johnson Controls (JCI): Kaufman Bros resumed coverage with a Buy rating and target price of $37.00.

Earnings Reports

General Mills (GIS): Reported FQ4 EPS of $0.41 in-line on revenue of $3.57 billion.  The company also guides FY11 EPS below consensus.

·         Futures: Dow +0.5%. S&P +0.7%. Nasdaq +0.55%. Crude +0.8% to $76.54. Gold +0.1% to $1244.10.

·         Asia: Japan -2.0% to 9383. Hong Kong -0.6% to 20129. China -1.2% to 2398. India +0.9% to 17701.

·         Europe: London +0.7%. Paris +0.8%. Frankfurt +0.6%.